Romania, one of the poorest nations in Europe, faces critical challenges in its efforts to implement labour market and social programmes similar to those found in more developed countries. Poverty is widespread and the economy requires major restructuring while a substantial number of households still depend on subsistence farming and other informal economic activities for survival. Increasing expenditures on social insurance is not a viable option as Romania already charges some of the highest payroll contribution rates in the world.

What role can and should labour market and social policies play in the current economic climate? In response to this question, this Review presents a rich and thorough analysis of Romania's under-employment problem and its resulting social hardships. The Review demonstrates that the present social challenges are closely intertwined with a highly distorted economy. Clearly, the top priority must be the modernisation of the economy with the provision of a comprehensive social safety net in the face of potentially higher unemployment. This book analyses the issues of labour market and social policy through an economic perspective, while providing diverse international comparisons.